Pancakeswap Analysis: CAKE Sees First Green Following Downtrends

Cake had one of the worst starts to the week. It opened at $3.34 on Monday and dipped to a low of $2.80  before recovery. Although it closed at $2.88, it registered losses exceeding 13%.

On Tuesday, the downtrend continued as it sank deeper. It went as low as $2.58 before finding support. Nonetheless, it had a significant change as it was heading for a -8% close but recorded losses of almost 4%.

On Wednesday, we noticed stronger demand concentration at $2.5 as another at the level halted at $2.54. However, Pancakeswap native token closed, losing more than 5%.

A look at the chart shows that the asset is seeing more buying pressure as it registers [its first green after more than five days of consistent price decreases. However, it is not as massive as many expected.

Cake Struggles at $2.55

Over the last 48 hours, one level of concern is the $2.55 support. During the previous intraday session, we noticed this was low of the day. In the 2-hour chart, we noticed several attempts at flipping this mark before it broke.

We are seeing the same wave of trials at the level. At 8 a:m UTC, the token dipped to $2.57. The next two candles show that asset struggled to stay above $2.55 as it retested $2.56 but got an extra boost from a gradual buildup in demand concentration. The next three candles point are indications the bulls defended the said barrier.

On the daily scale, this marked the second time Cake is closing in on the highlighted barrier. This may also indicate that the downtrend is coming to an end. This scenario is more likely as a look at indicators suggests the recovery is overdue.

The Relative Strength Index is currently at 19., indicating that the asset under consideration is oversold. This started on Sunday when it dipped below 30. An oversold asset is set for recovery and may start an uptrend.

Key Levels to Watch

Vital Support: $2.50, $2.40, $2

Vital Resistance: $2.80, $3, $3.40

One of the key barriers to keep an eye on with respect to the downside is the $2.50. Over the last three days, we observed a massive demand concentration at $2.55. with several attempts at it failing, we may expect the vital support to hold out. However, once $2.55 fails, we may expect a retest of $2.40.

As per market trends, CAKE may resume its uptrend. The first huddle to go over is the $2.80 resistance. Over the last two days, the token failed to flip. While we may not conclude that it is a strong barrier, breaking it may guarantee an attempt at $3.

The toughest on the list is the $3.40 barrier. After failing to break it on three occasions, the charts depict the result. This may also happen in the coming days as CAKE may struggle to flip and gain stability above it. Nonetheless, there is a huge demand concentration at $3.30 that may serve as the launch pad to a positive result against the said level.

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